Budget RATES, FEES, CHARGES & SURCHARGES JULY 21, 2020 2 - - PowerPoint PPT Presentation

2021 Proposed Budget

RATES, FEES, CHARGES & SURCHARGES

JULY 21, 2020

Agenda

MEET TONIGHT’S PANELISTS GUIDELINES AND PARTICIPATION RULES 2021 PROPOSED BUDGET, RATES, FEES & CHARGES PRESENTATION PUBLIC COMMENT

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Meet Tonight’s Panelists

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Commissioner Russell E. Olsen

PRESIDENT, DISTRICT 2

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Commissioner Linda Oosterman

VICE PRESIDENT, DISTRICT 1

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Commissioner Chris Stearns

SECRETARY, DISTRICT 3

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Thurston PUD Staff

 John Weidenfeller, General Manager  Julie Parker, Assistant General Manager  Kim Gubbe, Director of Planning & Compliance  Jim Campbell, Director of Field Operations  TaSeana Tartt, Finance, Accounting &

Customer Service Manager

 Ruth Clemens, Administrative Services Manager

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Public Meeting Participation Guidelines

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Participation Guidelines

 Important Note: Commissioners are here to listen to

public comment.

 Commissioners will refer questions to staff.

 Please state your name and address for the record.  You will be limited to 3 minutes to speak during Public

Comment.

 A countdown timer will be displayed for your

• convenience. After speaking, you will be muted.

 Please mute or lower the volume on all other devices

before you speak. Using multiple devices can cause audio feedback.

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Participation Guidelines

 You may not promote or oppose any candidate for

public office or any ballot proposition.

 You may not use this time to advertise.  Speakers who disturb the orderly conduct of the meeting

may forfeit their right to address the panelists and be removed from or muted throughout the meeting.

 We reserve the right to ”rename” your attendee name if

we deem your selected name inappropriate, profane or

• ffensive.

 The District and its moderators reserve the right to mute

you, if your conduct is considered disorderly or abusive.

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How to Deliver Public Comment: Video Participants

 Click on "Raise Hand" if you wish to participate.  Members of the public will not be shown on video.

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How to Deliver Public Comment: Telephone Participants

 Press *9 to “Raise Hand”  Last four digits of your number will be used to call on you.

 Example: If your phone number is (360) 555-1234, your meeting name

will be “Attendee 1234”

 We will alert you when you have 30 seconds left.

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Things to Keep in Mind

 Your name and phone number may be displayed for those

attending by video.

 If you look at the bottom of your screen, you can also direct

questions to our team using the Q&A portion of the Zoom.

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Staff Moderators

Kurin Miller

Clerk to the Board

Teal Reopelle

Administrative Assistant, Planning & Compliance

Justin Kadoun

Field Technician, Field Operations

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Follow Along with Us

Download the presentation at www.ThurstonPUD.org Click on the link on the right side of the page. 2021 Propose Budget Presentation

2021 Proposed Budget Presentation

TASEANA TARTT, FINANCE, ACCOUNTING & CUSTOMER SERVICE MANAGER

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Agenda

1.

Highlights

2.

Proposals

3.

Goals

4.

Proposed Recommendations

5.

Contingency Budget

6.

Budgetary Requests Not Funded

7.

Customer Demographics

8.

Rate Schedule & Bill Impacts

9.

Capital Budget

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2021 Proposed Budget Highlights

1.

All customers on same rate schedule

2.

Large increase to Debt Service ($382,000, 78% impact to rate increase)

• Repayment of 2018 & 2020 Bonds (H&R purchase

and infrastructure) 3.

Other inflationary increases

• Fuel, purchase power, staff merit increases

4.

Required Emergency Preparedness Funding

5.

Tight Budget – Many things not included

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2021 Budget Proposals

Highlighted Differences

Replacement Reserve Funds Emergency Preparedness Impact to Customer Rates

Option A

(Fully Funded)

Yes No 8.82%

Option B

(Mission Critical)

No Yes - $25k 3.99%

Option C

(Optional)

No Yes – $86k 7.02%

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2021 Budget Goals

➢ Move all customers to standard rates effective

January 1, 2021

➢ Meet our debt payment obligations and debt

service coverage ratio

➢

Bond covenant/agreement states: We must set rates to collect 1.25 times the debt service

➢ Provide funding for emergency preparedness

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2021 Proposed Recommendation: Mission Critical Budget

To increase the Capital Surcharge $0.65 from $9.35 to $10.00.

Ensures funding is available for planned and emergency water system repairs.

To increase base and usage rates by an average of 3.99%

To repay the debt used to purchase water systems and replaced infrastructure To fund the cost to

• perate and maintain

water systems with increased expenses To provide funding for emergency preparedness

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Contingency Budget

 Revenue  Water Rate Revenue  Expense  PFOA/PFAS  Testing if required by State*

*Estimated: Additional 3% Increase if testing is required Note: The PUD does not plan to do testing unless required by the State.

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Budgetary Requests Not Funded

Management & Commissioners

 Vehicle, Equipment and Building Replacements

Reserve Funds

 PFOA/PFAS Contamination Treatment

 Pollution Remediation – Legal Services

 Contractual Service – Lobbyist  Staff Tuition Reimbursement  Audio-Visual Installation in Commissioner Meeting

Room

 Geographical Information Systems

2021 Budget

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PUD Customer Demographics by County

as of June 30, 2020

PUD Customers Number Percentage Thurston 5,690 71.89% Pierce 1,412 17.84% Lewis 672 8.49% Kitsap 28 0.35% King 76 0.96% Grays Harbor 37 0.47% Total Customers 7,915 100%

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Rate Schedules & Bill Impacts



An average rate increase of 3.99% to all PUD customers.



Capital Surcharge increase from $9.35 to $10.00



All other Fees and Charges remained the same compared to 2020

 Website: www.ThurstonPUD.org

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Capital Budget: Projects

Asset Management Plan

 Isolation Valve Maintenance  Replace Plumbing  Pressure Tanks  Meter Replacements  Water System Upgrades  Sampling Stations  New Treatment  Treatment Replacement

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Capital Budget: New Projects



Water Trees

 2020-2021 : 11 New Installations at

Water Systems



Seismic Valves

 2020: Tanglewilde-Thompson Place

& Meadows Installation

 2021: Seeking funding for seismic

valves at more water systems



Thurston County Consolidation of 4 Group A Water Systems

 Hawley Hills  Deerfield Park 1 & 2  Marvin Gardens

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Capital Budget: Funding Sources

• Transfers from the Capital

Surcharge Fund

• Grants and Loans from

Drinking Water State Revolving Fund (DWSRF)

• Grants from the Public Works

Trust Fund (PWTF)

• Water Revenue Bond

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Thank You!

QUESTIONS AND DISCUSSION TO FOLLOW

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Public Comment

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Recap: How to Participate

 Computer attendees: Click “Raise Hand” at the

bottom of your screen.

 Phone attendees: Dial *9 to “Raise Hand”  You have the floor for 3 minutes.

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Public Comment

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We Want to Hear from You

(866) 357-8783 PUDcustomerservice@thurstonpud.org

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Providing safe, reliable, affordable and sustainable utility services to

• ur customers.

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